Search found 3977 matches

by bsteiner
Thu Jun 20, 2019 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Estate help - multi states involved
Replies: 20
Views: 986

Re: Estate help - multi states involved

... Not sure if it matters but a very important detail I left out was that almost everything prior to her death was in the vanguard account under both her and his names - Joint with rights of survivorship. No outside will or outside beneficiaries. ... That's helpful. If the assets were all his then...
by bsteiner
Thu Jun 20, 2019 5:58 am
Forum: Personal Finance (Not Investing)
Topic: Estate help - multi states involved
Replies: 20
Views: 986

Re: Estate help - multi states involved

... Not sure if it matters but a very important detail I left out was that almost everything prior to her death was in the vanguard account under both her and his names - Joint with rights of survivorship. No outside will or outside beneficiaries. ... That's helpful. If the assets were all his then...
by bsteiner
Wed Jun 19, 2019 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: Estate help - multi states involved
Replies: 20
Views: 986

Re: Estate help - multi states involved

If they lived in New York, the New Jersey and Pennsylvania taxes won't apply. With a few exceptions such as IRAs, whatever she owned will get a basis step-up at her death, and whatever he owned will get a basis step-up at his death. Did her parents provide for her in a trust that's not included in h...
by bsteiner
Mon Jun 17, 2019 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need "Professional Trustee?"
Replies: 44
Views: 2879

Re: Do I need "Professional Trustee?"

... In summary, as long as the distribution of an accumulation (discretionary) inherited IRA trust to the beneficiary is at least the amount of the RMD, the distribution would be taxable to the beneficiary at their own rate (stretch provision of IRA) and the assets would be protected as long as the...
by bsteiner
Sun Jun 16, 2019 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need "Professional Trustee?"
Replies: 44
Views: 2879

Re: Do I need "Professional Trustee?"

I am a DYI working on revising our wills to name the next generation (30-somethings) as executors and trustee of separate trust for our children (all married with one spouse in each couple in a high-risk profession). Once I decide on the terms of the wills and trusts, I will be working with an esta...
by bsteiner
Sun Jun 16, 2019 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need "Professional Trustee?"
Replies: 44
Views: 2879

Re: Do I need "Professional Trustee?"

Assume one had a bank or trust company as the administrative trustee, with no responsibility for managing investments. Could the beneficiary be co-trustee and be the one who does the investing? If the beneficiary had no control over discretionary distributions, would their ability to manage the inv...
by bsteiner
Sun Jun 16, 2019 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need "Professional Trustee?"
Replies: 44
Views: 2879

Re: Do I need "Professional Trustee?"

I am a DYI working on revising our wills to name the next generation (30-somethings) as executors and trustee of separate trust for our children (all married with one spouse in each couple in a high-risk profession). Once I decide on the terms of the wills and trusts, I will be working with an esta...
by bsteiner
Sun Jun 16, 2019 1:26 pm
Forum: Personal Investments
Topic: Opportunity Zone Funds
Replies: 9
Views: 707

Re: Opportunity Zone Funds

We looked at this for a real estate developer some of whose projects are in an opportunity zone, but it didn't seem practical to take advantage of it.
by bsteiner
Sun Jun 16, 2019 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Partnership advice for new business?
Replies: 9
Views: 456

Re: Partnership advice for new business?

The lawyer will take you through this, but you may want to consider what provisions you want to make if one of you dies, wants to retire from the business, or becomes disabled.
by bsteiner
Sun Jun 16, 2019 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Do I need "Professional Trustee?"
Replies: 44
Views: 2879

Re: Do I need "Professional Trustee?"

Gill and bsteiner are experts. I would trust their opinions over an arbitrary number of people who have not spent their careers in this field. Bsteiner, Beyond the reciprocal trustee concern, can you elaborate on the asset protection advantages of a corporate trustee? ... It's the possibility of th...
by bsteiner
Fri Jun 14, 2019 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need "Professional Trustee?"
Replies: 44
Views: 2879

Re: Do I need "Professional Trustee?"

If the two of you are the trustees for each other, there could be a risk that the IRS could say that it's reciprocal. Marty Shenkman and I wrote an article on reciprocal trusts in the April 2012 issue of Trusts & Estates that discusses that concept in detail: https://www.kkwc.com/wp-content/uploads/...
by bsteiner
Thu Jun 13, 2019 5:38 pm
Forum: Personal Investments
Topic: DIY for UHNW
Replies: 41
Views: 2802

Re: DIY for UHNW

... 5. Another option: Vanguard PAS, 0.3% fee. ... They're 0.3% on the first $5 million, but less above $5 million. It's 0.2% from $5 million to $10 million, 0.1% from $10 million to $25 million, and 0.05% above $25 million: https://investor.vanguard.com/financial-advisor/financial-advisor-fees. So...
by bsteiner
Wed Jun 12, 2019 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: US Citizen Retiring in Ireland
Replies: 30
Views: 3693

Re: US Citizen Retiring in Ireland

The U.S. also has an estate tax treaty with Ireland.
by bsteiner
Sun Jun 09, 2019 8:41 pm
Forum: Non-US Investing
Topic: Estate Planning US Citizen Resident in US: Estate Beneficiaries Indian Citizens
Replies: 14
Views: 1196

Re: Estate Planning US Citizen Resident in US: Estate Beneficiaries Indian Citizens

I am a US Citizen with <1.5 Million in assets with the majority in 401K funds and ~250K in equity in a house in TX that is now a rental property. A brother and sister and India are named beneficiaries of the 401K assets. I understand from casual reading that since they are not citizens it will lead...
by bsteiner
Sat Jun 08, 2019 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: Where to Purchase Defined Benefit Plan
Replies: 13
Views: 1388

Re: Where to Purchase Defined Benefit Plan

You don't "purchase" a retirement plan. You set one up. There are two basic types of retirement plans: defined benefit and defined contribution. In a defined contribution plan, the employer decides on the contributions, but doesn't promise what the benefits will be. The benefits depend on the invest...
by bsteiner
Wed Jun 05, 2019 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Trust (Doesn't accept Real estate, etc.)
Replies: 8
Views: 424

Re: Vanguard Trust (Doesn't accept Real estate, etc.)

If a trust under the Will owns real estate, the other trustees will be responsible for it. This used to happen more often when the estate tax exclusion amount was much lower, and the decedent's interest in the home sometimes went into the credit shelter trust because there weren't enough other asset...
by bsteiner
Wed Jun 05, 2019 9:39 am
Forum: Personal Consumer Issues
Topic: Automobile Dealer's Finances:
Replies: 5
Views: 469

Re: Automobile Dealer's Finances:

I did some work many years ago for someone who owned a car dealership. As you might expect, they made money in various ways: selling new cars, selling used cars, service, financing, etc.
by bsteiner
Tue Jun 04, 2019 4:26 pm
Forum: Personal Investments
Topic: Deferring Tax on 225K annually with a Defined Benefits Plan
Replies: 7
Views: 378

Re: Deferring Tax on 225K annually with a Defined Benefits Plan

... Can you transfer these sorts of plans to your heirs? It depends on the terms of the plan. Government and large company plans are less likely to provide survivor benefits other than survivorship annuities for the surviving spouse since they're intended as retirement benefits. But small company p...
by bsteiner
Tue Jun 04, 2019 3:15 pm
Forum: Personal Investments
Topic: Deferring Tax on 225K annually with a Defined Benefits Plan
Replies: 7
Views: 378

Re: Deferring Tax on 225K annually with a Defined Benefits Plan

An actuary calculates (based on various assumptions) how much the employer has to contribute each year so that the fund will be sufficient to fund the benefits. The funding for an older employee is done over a shorter period of time (hence more each year) since the older employee will reach retireme...
by bsteiner
Tue Jun 04, 2019 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Settlor / Grantor for this trust
Replies: 17
Views: 725

Re: Settlor / Grantor for this trust

Bruce, if I made a gift to the trust would I be considered a grantor? I assume there are no tax consequences to this unless it’s a defective irrevocable trust treated as a grantor trust for tax purposes Depending on the terms of the trust, the portion of the trust attributable to your contribution ...
by bsteiner
Tue Jun 04, 2019 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Settlor / Grantor for this trust
Replies: 17
Views: 725

Re: Settlor / Grantor for this trust

For tax purpose(s), the persons who contribute property to the trust are the grantor(s). Bruce, are you saying the overseas family making irrevocable gifts to this trust would be considered grantors? They would be grantors for tax purposes. If it matters, the Declaration of Trust states that the tr...
by bsteiner
Mon Jun 03, 2019 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Settlor / Grantor for this trust
Replies: 17
Views: 725

Re: Settlor / Grantor for this trust

As Gill pointed out, grantor and settlor are the same thing, as are donor, trustor, and probably a few others. Grantor and settlor are the most common. Some people prefer grantor since the tax law uses that term. Some people prefer settlor since many state statutes use that term. Most trusts created...
by bsteiner
Mon Jun 03, 2019 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Settlor / Grantor for this trust
Replies: 17
Views: 725

Re: Settlor / Grantor for this trust

For tax purpose(s), the persons who contribute property to the trust are the grantor(s).
by bsteiner
Mon Jun 03, 2019 6:23 am
Forum: Personal Finance (Not Investing)
Topic: Help with avoiding double taxation in C Corp.
Replies: 9
Views: 545

Re: Help with avoiding double taxation in C Corp.

Salary to the extent reasonable is deductible by the corporation so only one level of tax. Dividends are taxable at favorable rates which partially offsets the double level of tax. Retirement plans are deductible (with limitations) by the corporation and not currently taxable to the employee. Going ...
by bsteiner
Sun Jun 02, 2019 7:39 am
Forum: Personal Finance (Not Investing)
Topic: Required Minimum Distributions
Replies: 57
Views: 4578

Re: Required Minimum Distributions

Here's the information on withholding for Vanguard IRAs: https://personal.vanguard.com/pdf/s166.pdf?2210105563.
by bsteiner
Sun Jun 02, 2019 6:39 am
Forum: Personal Finance (Not Investing)
Topic: Is an S Corp right for me?
Replies: 9
Views: 666

Re: Is an S Corp right for me?

Prahasaurus wrote:
Sat Jun 01, 2019 11:58 pm
bsteiner wrote:
Sat Jun 01, 2019 11:34 pm
What are you trying to accomplish?
Invoice clients in Europe and the Middle East. Sign agreements with clients. Legally minimize US taxes, including social. Simplify my taxes as much as possible.
In that case, maximize your retirement plan contributions.
by bsteiner
Sun Jun 02, 2019 6:28 am
Forum: Personal Finance (Not Investing)
Topic: How does a mortgage banker make money?
Replies: 14
Views: 1654

Re: How does a mortgage banker make money?

For 1-2%, I’ll call 50 banks myself and get a deal. I have never used a mortgage broker - never saw any need to put a middleman between me and the banks. Especially these days (with the information available online) it seems to me there should be little need for anyone to use one save for unusual c...
by bsteiner
Sat Jun 01, 2019 11:56 pm
Forum: Personal Finance (Not Investing)
Topic: How does a mortgage banker make money?
Replies: 14
Views: 1654

Re: How does a mortgage banker make money?

The interest rate they charge on the loans they make is higher than the interest rate they pay on deposits.
by bsteiner
Sat Jun 01, 2019 11:34 pm
Forum: Personal Finance (Not Investing)
Topic: Is an S Corp right for me?
Replies: 9
Views: 666

Re: Is an S Corp right for me?

What are you trying to accomplish?
by bsteiner
Sat Jun 01, 2019 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: Is an S Corp right for me?
Replies: 9
Views: 666

Re: Is an S Corp right for me?

How would the income be taxed in the country where you live now? That might affect the analysis.
by bsteiner
Sat Jun 01, 2019 10:21 am
Forum: Personal Finance (Not Investing)
Topic: How do BH define Cost of Living Cities
Replies: 48
Views: 2646

Re: How do BH define Cost of Living Cities

Clients and colleagues outside the United States think NYC is a bargain.
by bsteiner
Sat Jun 01, 2019 10:17 am
Forum: Investing - Theory, News & General
Topic: Loss of stretch inherited IRA -effect on legacy planning?
Replies: 4
Views: 454

Re: Loss of stretch inherited IRA -effect on legacy planning?

It will make Roth conversions attractive in more cases. In the case of a traditional IRA the income tax cost of leaving it in trust rather than outright won't be as much. Since the income will be bunched into 10 years, individual beneficiaries may be in a higher bracket than they would otherwise hav...
by bsteiner
Thu May 30, 2019 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: How to preserve $10M+ in wealth owned by unsophisticated people?
Replies: 82
Views: 14455

Re: How to preserve $10M+ in wealth owned by unsophisticated people?

Have your mother provide for you in trust rather than outright to keep your inheritance out of your estate and to protect it against your creditors and spouses.

You can provide for your wife and children in trust rather than outright for the same reasons.
by bsteiner
Thu May 30, 2019 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: Should my wife and I cancel our Whole Life Insurance policies?
Replies: 31
Views: 2278

Re: Should my wife and I cancel our Whole Life Insurance policies?

TheHCInvestor wrote:
Thu May 30, 2019 7:50 pm
My wife and I purchased Whole Life Insurance in less than a year ago at the recommendation of our financial advisor ...
Was he/she a financial advisor or an insurance agent?
by bsteiner
Thu May 30, 2019 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Another Trustee/trust Question
Replies: 16
Views: 1177

Re: Another Trustee/trust Question

... could one form a domestic asset protection trust under SD law using VNTC as trustee by specifying SD law in the trust document? (N.B. SD has a DAPT statute, PA does not) I could be wrong (and I apologize if I am) but if VNTC is trustee of a trust that chooses SD law, I don't believe it's the sa...
by bsteiner
Thu May 30, 2019 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Schooling in NYC
Replies: 7
Views: 631

Re: Schooling in NYC

... We have a 14 months old daughter and have started to learn about preschool and future education options. We live in a not so good school district solely for the reason of close proximity to my work. I take overnight calls at the hospital and staying away from family for so many nights is out of...
by bsteiner
Thu May 30, 2019 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Another Trustee/trust Question
Replies: 16
Views: 1177

Re: Another Trustee/trust Question

... For this purpose, control means the right to become a trustee, the right to remove and replace his/her co-trustee (provided the replacement trustee is not a close relative or subordinate employee), and the power to appoint (give or leave) the trust assets to anyone he/she wants (other than the ...
by bsteiner
Thu May 30, 2019 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2261

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

... The other problem with a CRT is tax reporting requirements. In my experience with them CPAs charge a lot to do the annual returns. Last one I saw was $5k a year. So if the CRT is not large that tax preparation hit really takes away some of the advantages. However, it's good to know there might ...
by bsteiner
Thu May 30, 2019 8:45 am
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2261

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

He is correct that a charitable remainder trust (CRT) will replicate the stretch. A CRT is tax-exempt so it can receive the IRA benefits all at once without current tax. It makes distributions to the children over their lifetimes, which will be taxable. Bsteiner, So if someone contributes a Roth to...
by bsteiner
Wed May 29, 2019 9:29 pm
Forum: Personal Finance (Not Investing)
Topic: Naming beneficiaries for non-retirement accounts
Replies: 15
Views: 1276

Re: Naming beneficiaries for non-retirement accounts

It’s not unusual but it’s often unwise. Under what circumstances would it be wise or unwise? It would be wise for very small estates with one beneficiary (or a small number of beneficiaries who will cooperate). It would be wise for dispositions that you don't want to appear in the Will (such as a m...
by bsteiner
Wed May 29, 2019 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2261

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

I just bumped into this article that talks about some options in this arena. Here's the link https://www.investmentnews.com/article/20190528/FREE/190529939/how-to-replicate-a-stretch-ira or go to investmentnews.com and look for how to replicate a stretch IRA. I know the author. He is correct that a...
by bsteiner
Wed May 29, 2019 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: Naming beneficiaries for non-retirement accounts
Replies: 15
Views: 1276

Re: Naming beneficiaries for non-retirement accounts

It’s not unusual but it’s often unwise.
by bsteiner
Wed May 29, 2019 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2261

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

You can create trusts in your Will that say what you want. You should consider taxes (you didn’t provide enough information to say whether there are any tax considerations). You should consider the special rules for trusts that receive retirement benefits. You should keep it flexible since no one kn...
by bsteiner
Wed May 29, 2019 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Another Trustee/trust Question
Replies: 16
Views: 1177

Re: Another Trustee/trust Question

trustquestioner wrote:
Wed May 29, 2019 3:21 pm
... Trust companies will charge at least 1% and almost certainly trail the market with active trading. ...
Corporate trustees don't do very much trading.
by bsteiner
Wed May 29, 2019 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Another Trustee/trust Question
Replies: 16
Views: 1177

Re: Another Trustee/trust Question

Kids 11 & 13. 4M in networth and life insurance. Really don't want to put that much money in one person's pocket. Is Vanguard a good trustee or is there another well known institution with low fees? What percentage should we expect to pay? Brother and sister-in-law will be the primary guardians and...
by bsteiner
Tue May 28, 2019 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Changing Ownership of Life Insurance Policies
Replies: 6
Views: 446

Re: Changing Ownership of Life Insurance Policies

... I can see where the reporting is clear on the estate tax return as to the existence of life insurance policies and the owners and beneficiaries. What about the transfer of ownership of the policy during the life of the insured? Does anyone know if there is some way that is tracked and reported ...
by bsteiner
Mon May 27, 2019 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Blended Family Issues and Keeping Things Equal
Replies: 38
Views: 3275

Re: Blended Family Issues and Keeping Things Equal

... Thanks! So even though the beneficiary has some control (including potentially the right to withdraw a significant sum of money?), he/she can’t be forced to do so by a divorce decree, lawsuit, etc.? If the beneficiary has the right to withdraw from the trust, the creditor protection may be lost...
by bsteiner
Mon May 27, 2019 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning question risk of DNA services with half brother relatives filing against estate
Replies: 48
Views: 3856

Re: Estate Planning question risk of DNA services with half brother relatives filing against estate

... The real estate, Coop apartment (worth 650K) should go to trust if the cooperative agrees, I think this is harder, and 89 upstate (worth 189K) property should go into a trust as well. ... Depending on the co-op board, it may be difficult or impossible to transfer the co-op apartment to a revoca...
by bsteiner
Mon May 27, 2019 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Blended Family Issues and Keeping Things Equal
Replies: 38
Views: 3275

Re: Blended Family Issues and Keeping Things Equal

...You should focus on the degree of control each beneficiary should have over his/her trust, and to the extent a beneficiary doesn't control his/her trust, who should control it... Bruce, you often mention this “intermediate” level of trust; neither outright nor tied up indefinitely. I assume that...
by bsteiner
Mon May 27, 2019 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Changing Ownership of Life Insurance Policies
Replies: 6
Views: 446

Re: Changing Ownership of Life Insurance Policies

Yes, the transfer of a policy during the insured's lifetime is a gift, though the value of the gift (the value of the policy) is less while the insured is alive.. You should see the extent to which you can even everyone up by transferring policies within the gift tax annual exclusion. If that's not ...